Ghana has accepted the need for a single Corporate Governance Code that harmonises all existing sector codes and regulations benchmarked to international best practices, Chairman of the African Corporate Governance Network (ACGN), Rockson Dogbegah, has disclosed.
Mr. Dogbegah, who is also the President of the IoD-Ghana, said the draft of the National Corporate Governance Code which is expected to be ready by August this year, is a project being led by the IoD-Ghana, the Bank of Ghana, State Interest and Governance Authority (SIGA), Security and Exchange Commission (SEC), Association of Ghana Industries (AGI), the Ghana Bar Association, among others.
Speaking at the sensitisation meeting of the African Principles and Guidelines on Corporate Governance hosted by the African Peer Review Mechanism (APRM) in Accra, Mr. Dogbegah said there is a global consensus that implementation of high standards of corporate governance is crucial to the economic growth, sustainable development and social transformation not only Ghana, but of Africa as a whole.
“It is against this backdrop that conversations for the need for a single national code is currently being worked on. It is envisaged that by August this year, a draft code will be developed for stakeholder validation,” he said.
Equally, the Ministry of Trade and Industry has also called for a new emphasis on strengthening governance and sound management of companies and public sector institutions through solid Corporate Governance Code and Principles as the country emerges from the current COVID-19 pandemic.
Minister of Trade and Industry, Alan Kyerematen, in a speech read on his behalf by deputy Minister of Trade in Charge of Micro, Small and Medium Enterprises Development (MSME), Nana Ama Dokua Asiamah-Adjei, said good corporate governance helps to avoid the collapse of businesses.
“As we emerge from the current COVID-19 pandemic, we require a new emphasis on strengthening governance and sound management of corporate Ghana and public sector institutions to deliver the desired outcomes for all stakeholder groups,” he indicated.
The new Companies Act of 2019 (Act 992) has elevated governance standards for all companies. Equally, the Public Financial Management Act of 2016 (Act 921), the State Interests and Governance Authority Act of 2019 (Act 990), and others, have all made provisions for the governance of public sector institutions including state-owned enterprises to help promote transparency, accountability, and prudence in the management of state resources for Ghana.
These efforts, the Mr. Kyerematen said, already set the tone for a National Corporate Governance Code, adding: “We recognise the efforts that other regulators and indeed other stakeholders are making towards the same goal and it is now time to join forces to work on a national code that cuts across industries and sectors and business types and sizes”.
Professor Eddy Maloka, CEO, APRM, said, good corporate governance is universal and is important that many countries on the continent adopt it.
He said since its establishment in 2003, the APRM had conducted 25 reviews among 42 of its member states, with Ghana being the first, adding that the adoption of the principles and guidelines of good corporate governance would accelerate economic development in Africa.
